opp icon Great Indian Middle-Class

Invest in the secular investment theme of rising consumer spending

A portfolio for long-term capital appreciation by investing in a basket of stocks benefiting either directly or indirectly from the rising consumption-led demand in India.

introducing: Great Indian Middle-Class

The Great Indian Middle-Class portfolio is a way to invest in the changing consumption patterns of millions of Indian households. As India's economy grows, so does the average Indian's disposable income. This means that people have more money to spend on things like food, clothing, entertainment, and travel. This is creating opportunities for companies that sell these products and services. It invests in businesses that are involved in these sectors, such as fast-moving consumer goods (FMCG), consumer durables, retail, multiplexes, hotels, and entertainment. By investing in this, you can get exposure to the growth of the Indian middle class and the opportunities it creates for businesses.

investment strategy

The portfolio will be managed using a fundamental, bottom-up approach that focuses on identifying growth companies with high return on equity (ROE) and sustainable competitive advantages.

Invest across market capitalization and style, with a bottom-up approach to stock-picking within the consumption space.

Invest in foreign securities including ADRs / GDRs / Foreign equity and debt securities.

Maintain a concentrated portfolio of stocks, in sectors like FMCG, Autos, E-commerce, Media & Entertainment, Banks, Education, Transportation.

What you are investing in

FMCG companies that focus on low per capita consumption, premiumization and other innovations.

White goods companies with low penetration rates, electrification drive, and consumer finance.

Stocks of companies engaged in consumer durables, non-durables, retail, textiles, auto OEMs, media & entertainment.

Companies involved in hotels, resorts & travel services, education services, airlines, e-commerce, consumer transportation & logistics services.

historical performance in global markets

Over the past 1, 3, and 5 years, most consumption space-focused funds have outperformed benchmark indices. The fund is benchmarked against the NIFTY India Consumption Index (TRI).

Great Indian Middle-Class: pros & cons

benefits

Focus on consumption-led demand.
Invests in a small number of stocks, which can help to reduce risk.
Bottom-up approach that can identify high-potential undervalued stocks.

drawbacks

The consumer sector is cyclical, and there can be periods of volatility.
Relatively high fees.
Higher risk than usual.

annualized past returns

The investment objective of this portfolio is to provide the investor with the opportunity for long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities in the consumption space.

risk rating

High

who should invest in this

This portfolio is made for long-term investors who are willing to take moderate risk and are looking for capital appreciation. Investors should have a time horizon of at least 7+ years and should expect to see volatility in the short term. Investors should have a basic understanding of the consumption sector and the factors that can affect its performance.